After Waldstadt, Oberreut was the second district to be designed in a wooded setting. It was originally built on the Bulach area as a so-called satellite settlement in the southwest of the city. The renovation of Karlsruhe's old town was a contributing factor to the rapid implementation of the construction work. The first tenants moved into the affordable apartments in Oberreut, intended primarily for families with many children, in the summer of 1964. Development of the open fields began towards the end of the 1960s, and by 1970, Oberreut had grown to 5,700 inhabitants instead of the planned 4,200.

The construction of a tram line connects the district with the city center. In the 1990s, a new urban quarter with terraced houses and apartment blocks, as well as community facilities, was built in three phases. Furthermore, a new school complex was constructed, and the establishment of businesses and services in Oberreut was actively promoted.